A.M.P. SOCIETY

Matamata Record, Volume XVIII, Issue 1626, 9 May 1935, Page 3

A.M.P. SOCIETY

NEW ZEALAND DELEGATE’S REPORT .

In the course of his first annual report, Sir William Hunt, who represents the New Zealand branch directorate on the A.M.P. Society, states:—

With respect to our operations, I am in the happy position of being able to say that for the third successive year since the difficult days of 1931 the ordinary department new business written in New Zealand has shown a substantial increase, the total of £2,899,561 being over half-a-million in excess of the previous year. Coupled with this has been the greater success attendant upon our efforts for the conservation of the existing business surrenders, lapses and the cashing of bonuses all having shown substantial decreases. The resultant increase in business in force has been most gratifying, and I feel it a privilege to be able to record the fact that, according to the latest Government returns, the society holds over 41 per cent, of the life assurance business of the Dominion, despite the fact that there are fourteen offices operating, while of the total assets of £39,816,500 invested by life offices in the country, the society’s funds account for £17,409,849. Obviously, we have been a material factor in the Dominion’s development.

My remarks on our year’s work would not be complete without reference to the important part played by the industrial department. The increased new business in this department for 1934 is a clear indication of the faith placed in the society by those of small incomes, and still greater progress during the current year is confidently predicted.

I have referred to the fact that the society’s investments in the Dominion amount to over £17,000,000. The administration of these funds' has, in recent years, called for particularly close attention from the local board and the management, but the conservatism which has characterised the investment policy of the past years has lightened our task immeasurably, and we take great satisfaction in the fact that the difficult days since .1930 have merely tended to throw the stability of our position into even greater relief. <

As far as the mortgage investments are concerned, we feel that we can face the future with equanimity. It has been necessary in recent .years to extend consideration to numbers of mortgagors to tide them over particularly difficult periods, and though the integrity of the funds has necessarily been prime consideration in such circumstances, yet we have, by rendering material assistance in some cases, and exercising reasonable forbearance in others, been able’ to enhance the society’s goodwill in the Dominion to a remarkable extent. The bulk of our mortgage advances have been made on broad acre securities, and despite the heavy fall in the value of farm produce, the local board still feels that with the country’s, dependence on its primary industries first-class country properties continue to furnish excellent security.

The x direct outcome of the enhanced good will to which I have referred has been an increased inquiry for loans on broad acre securities, and the first-class investments which we have thus been able to secure are, in themselves alone, more than justification for the policy which has been pursued.

Speaking of the Dominion generally, the past year has been one of achievement. Our primary producers as a whole have been able to improve and consolidate their positions, retail business has recorded a more buoyant tone, unemployment figures have been materially reduced, resulting in a welcome decrease, in taxation, and though we can as yet record only partial recovery, the outlook is not without promise. There is talk of levies or quotas for meat and dairy produce, and the future of wool seems to some extent at least to be wrapped up with the question of reciprocal trade agreements with European countries. Whereas, however, experiments have shown that there is no panacea for the economic ills from which the .world is suffering, our dependence on Great Britain is such that we can derive much hope from her steady industrial improvement, and face the future with greater confidence than has been possible since (Continued in Next Column)

In the society’s annual report it is stated: “ The society has £17,500.000 invested in New Zealand and over 166,000 policies are now in force. on its Dominion registers. It is particularly gratifying to observe that because of the reduction in Australian taxation the society has been called upon to pay £455,894 less in that connection than in 1933 and New Zealand policy-holders would be justified in hoping that the Government will soon see fit to follow the Australian lead in its treatment of life Assurance companies.”